IN THE INCOME TAX APPELLATE TRIBUNAL “I” BENCH MUMBAI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER ITA No. 2103/MUM/2025 Assessment Year: 2022-23 Fort Canning Investments Assistant Commissioner of Pte. Ltd. Income-tax (International

260 Orchard Road, #14-02 taxation) - 2(3)(1)

Vs.

The Heeren, Singapore, Mumbai Singapore – 238855 (PAN: AACCF9284G)

(Appellant) ( R e spondent)

ITA No. 2104/MUM/2025 Assessment Year: 2022-23 Fort Canning Credit Assistant Commissioner of Investments Pte. Ltd. Income-tax (International

260 Orchard Road #14-02 taxation) - 2(3)(1)

Vs.

The Heeren, Singapore, Mumbai Singapore – 238855 (PAN: AADCF7866R)

(Appellant) ( R e spondent)

Present for:

Assessee : Shri Dhanesh Bafna, Ms. Priyanka Agarwala, Ms.Hirali Desai, Ms. Nidhi Agarwal and Shri Yogesh Malpani, CAs Revenue : Shri Satya Pal Kumar, CIT DR and Shri Krishna Kumar, Sr. DR Date of Hearing : 29.10.2025 Date of Pronouncement : 27.01.2026 AY 2022-23

O R D E R

PER GIRISH AGRAWAL, ACCOUNTANT MEMBER:

These appeals filed by the assessee are against the assessment order passed under the directions of Dispute Resolution Panel-1 (DRP), Mumbai, vide order no. ITBA/DRP/F/144C(5)/2024- 25/1071292022(1), dated 17.12.2024, u/s. 144C(5) of the Income-tax Act, 1961 (hereinafter referred to as the “Act”), for Assessment Year

2022-23.

2. Grounds taken by assessee in ITA No.2103/Mum/2025 are reproduced as under:

“1. On the facts and in the circumstances of the case and in law, the order dated 16 January 2025 passed by the Ld. AO under section 144C(13) read with section 143(3) of the Act is barred by limitation, without jurisdiction, bad in law and is liable to be quashed.

2. On the facts and in the circumstances of the case and in law, the Ld. AO/ Hon'ble DRP, erred in treating the 'capital gains' to the extent of Rs. 30,83,52,242 arising on settlement of NonConvertible Debentures and Masala Bonds as 'interest' and not giving the benefit of exemption under Article 13(5) of the India-

Singapore Double Taxation Avoidance Agreement ('DTAA').

3. On the facts and in the circumstances of the case and in law, the Ld. AO/ Hon'ble DRP, erred in treating the capital gains of Rs. 31,62,26,442 on 'renouncement of right entitlement of shares' as akin to capital gain on 'sale of shares' and taxing the same under Article 13(4B) of the DTAA.

4. Without prejudice to the above, on the facts and in the circumstances of the case and in law, the Ld. AO erred in determining the 'Income chargeable to tax under normal rates' as Rs.62,45,78,687 and 'Income chargeable at special rates' as Rs. 10,25,08,95,493 in the computation form attached to the assessment order, instead of Rs. 12,37,18,587 and 10,75,17,55,591 respectively as determined by the Ld. AO himself in the assessment order.

5. On the facts and in the circumstances of the case and in law, the Ld. AO erred in levying interest under section 234B of the Act.

6. Without prejudice to the above, on the facts and in the circumstances of the case and in law, the Ld. AO erred in computing the 'total interest and fee payable' at point 42 of the computation sheet attached to the assessment order at Rs.

9,23,22,483 instead of Rs. 9,20,69,620 as mentioned at point 38.

AY 2022-23

7. On the facts and in the circumstances of the case and in law, the Ld. AO erred in initiating penalty proceedings under section 270A of the Act, against the Appellant.”

2.1 Grounds taken by assessee in ITA No.2104/Mum/2025 are reproduced as under:

“1. On the facts and in the circumstances of the case and in law, the order dated 28 January 2025 passed by the Ld. AO under section 144C(13) read with section 143(3) of the Act is barred by limitation, without jurisdiction, bad in law and is liable to be quashed.

2, On the facts and in the circumstances of the case and in law, the Ld. AO/Hon'ble DRP, erred in treating the 'capital gains' to the extent of Rs. 10,88,45,422 arising on settlement of NonConvertible Debentures and Masala Bonds as 'interest' and not giving